The present invention relates generally to a computer payment system and more specifically to an account transaction system which is used for performing a payment transaction from an account.
Several systems are presently available with which a person may use an interactive computer-aided payment system. Several of these systems involve credit card payment systems. In these types of systems usually the computer systems credit the retailer or merchant where the transaction card is used and the payment is logged against the transaction card holder's file and later billed to the transaction card holder.
In other systems the card holder will fund an account which is debited for the amount of the transaction directly such as currently being utilized in the banking industry; where transaction cards enable common banking functions to be performed without a teller by using an automatic terminal. These type of transaction cards are known as "debit cards".
As the use of computer-aided transaction card systems has increased various automatic "on-line" authorization systems have developed. In these systems transaction information identifying the card holder and information regarding the transaction itself is usually transmitted via a communications network to an authorization center for approval, denial or further routing.
Typically, in a credit card payment system, these authorization centers determine whether a transaction will be approved or denied by comparing the transaction information against a set of various parameters supplied by the transaction card issuer to the authorization center. These parameters detail the transaction card holder's records. Typically these records include information regarding any limitations on the amount.
Typically, in a debit card payment system these authorization centers determine whether a transaction will be approved or denied by comparing the transaction information against the individual account issuers's files of account users to determine if funds are available to complete the transaction.
Employing either of these types of authorization systems may require searching the complete file of all the card holders of a card issuer or the authorization center may directly access a user's account file through an account number or code assigned to the account user. This often results in relatively long response times, typically the response time is between 20 and 40 seconds per account transaction, when approving or denying a transaction. Longer response times result in higher communication costs and longer delays in completing a transaction and are therefore undesirable.
In addition, typically in a credit card payment system when a card holder uses his or her transaction card in a retail place of business, the card issuer is directly responsible for payment to the retailer or merchant of the card holder bill. The card issuer must then bill the card user on a periodic basis for reimbursement. Between the time the card holders transaction is approved and the time the card holder is billed by the card issuer, the card holder may become insolvent or unable or unwilling to reimburse the card issuer thereby resulting in collection problems for the transaction.
In view of these disadvantages of existing account transaction systems, it would be desirable to provide a system where the authorization time of a transaction is reduced. Such a system would reduce communication costs and thereby reduce delays in completing a transaction. It would also be desirable to provide a system where the risk of non-payment to the card issuer from the card holder is substantially reduced.
Therefore in view of the above, it is an object of the present invention to provide a new and improved transaction authorization and payment system wherein the interactive time delay before a transaction is approved or denied is reduced.
It is another object of the present invention to provide a new and improved authorization and payment system wherein issuers of cards can easily and repeatedly update the information on which an approval or denial of a transaction is based.
It is another object of the present invention to provide a new and improved authorization and payment system wherein the present invention provides the card issuer with an additional degree protection from authorizing a transaction when there is a substantial risk of non-payment from the cardholder for the amount of the transaction.
It is a further object of the present invention to provide a new and improved authorization and payment system wherein the risk to the card issuer of nonpayment from the card holder for the amount of a transaction is minimized.
It is a further object of the present invention allowing the account issuer to maintain transactions and payment information regarding cardholder accounts for marketing and control reasons.